An overview of zambias economic and poverty situation introduction poverty is the most profound challenge that zambia faces today. The following thesis is aimed to research the issue of advantages and disadvantages of privatization of health insurance. Com hons economics udw this dissertation is submitted in partial fulfilhnent of the requirements for the llm degree in international and african regional law in the school of law. Maloza you cant compare chile to zambia because of transportation advantages chile has over zambia 5 avtomat karanshinkov september 1, 2016 at 3. The disadvantages of privatisation scool, the revision website. Indeed, each element of privatizationfrom its apparent costsaving properties to its possible negative impact on. That privatisation has led to increased industrial capacity utilisation, profitability and. Editorial although there are claims of success from the sponsors of zambia s privatisation programme, these successes have proved impossible to see with our naked eyes.
The fact that privatization and an important strategy of economic rejuvenation of even the communist nations is a testimony to the economic role of privatization. It may happen that the government manages privatisation in close relation to restructuring other public sector enterprises through a public holding corporation or any other kind of public agency or special purpose entity acting as. Many reasons explain the movement by cities and states toward privatization to restructure and rightsize government. History examples, and issues page executive summary i i. What are the advantages and disadvantages of privatization. Therefore, in this case, privatisation would just create a private. It can happen at the local, county, state and even federal level. The arguments or advantages of privatization maybe be as. Fundanga and andrew mwaba introduction the term privatization is often loosely used to mean a number of related activities, including any expansion of the scope of private sector activity in an economy and the adoption by the public. Pdf the state, privatisation and the public sector in south. The privitisation of the electricity industry in south africa. Advantages and disadvantages of privatization the merits and drawbacks of privatization have been subjects of considerable debate among businesspeople, city leaders, and public employees alike.
The abuse of the public interest those who have opposed privatisation argue that the public utilities were nationalised in the first place in the public interest. An overview of zambia s economic and poverty situation introduction poverty is the most profound challenge that zambia faces today. Pdf the state, privatisation and the public sector in. The initial groundwork and clarification of objectives recommended herein should enable. Privatization is the transfer or sale of governmentowned assetsinstitutions to the private sector. Mar 23, 2011 zambia was originally colonised by the british, and enjoyed prosperity and stability for many years. Secondly, that the affect of privatisation on the fourfifths of the zambian population who live below the poverty line is given the attention that is warrants. In the 1980s and 1990s, the uk privatised many previously stateowned industries such as bp, bt, british airways, electricity companies, gas companies and rail network. An overview of zambias economic and poverty situation. Privatisation has had an adverse impact on the enjoyment of basic social and economic rights in zambia because, in the race to deregulate the economy and selloff the state. We have been hearing for many years from a lot of pundits about how privatization supposedly destroyed the once vibrant zambian economy. With access to raw materials such as copper and land, zambia seemed to have all it needed to succeed in the global economy.
A look at the arguments for and against privatisation selling stateowned assets to the private sector. The findings from this desk research provide a basis for the analysis of the impact of privatization, corporatisation and various forms and degrees of. There are numerous advantages of privatization as well as many disadvantages of privatization, and. Between the periods 19701975, 19761990 and 19911999, per capita gdp fell by 0.
Then it gained independence in 1964, and from that point on it was all downhill. A large share of the blame for this disaster can be put at the feet of the collapse of the world price of. It is a social crisis with the majority of people denied a minimum decent living standard. A case study of the zambian privatisation programme,19912001 by susan lungowe kongwa b. A large share of the blame for this disaster can be put at the feet of the collapse of the world price of copper. Reserved jobs for zambians only, nationalisation of the mines, nepotism to. The zambian government has kept an interest in some of the larger enterprises which it intends to sell to zambians at a later date. Any denationalisation programme should be designed to seek pareto improvements, meaning that employees, consumers, government and new. In line with other newly independent african countries, the.
An act to provide for the privatisation and commercialisation of state owned. The impact of privatisation on the zambian economy from 1975 zambias economy underwent a world record breaking decline. Oct 26, 2018 privatization is the phenomenon of governments contracting privately owned, forprofit companies to provide services that were previously provided by the governments themselves. Reserved jobs for zambians only, nationalisation of the mines, nepotism to an enormous extent, bribery and corruption. Although progress was initially slow, mainly due to the inertia associated with start up activities and generally opposition from interested parties2, the program picked up momentum in the. Economy and globalization in zambia at the time of independence, zambia was expected to become of the wealthiest nations in africa. An evaluation of the policies, procedures and experiences caleb m. The latest jctr 2001 monthly food basket survey shows that it is becoming more and more. The impacts of privatisation on copperbelt communities social impacts of privatisation 15% of zambias 10. The trade policy has added to zambias disadvantage compared to. Those who have opposed privatisation argue that the public utilities were nationalised in the first place in the public interest.
Zambia postprivatization study english the world bank. The region is the most urban and the most industrial in the country, with the. Simon battensbyphotographers choicegetty images privatization is advantageous because it improves efficiency and profitability, prevents political interference and increases competition. The focus of this study was an analysis of the zambia privatisation from 1991 to 200l. According to the guardian, privatization is disadvantageous because it can create private monopolies and a focus on profits rather than public interest in the delivery of essential services, such as healthcare. In the 1980s and 1990s, privatisation has been widely adopted across the developing world and has reversed the previous trend towards the expansion of state enterprise. Advantages and problems of privatisation economics help. Free essays on disadvantages of nationalisation in zambia. Government of the republic of zambia and a state owned enterprise. Privatization is the phenomenon of governments contracting privately owned, forprofit companies to provide services that were previously provided by the governments themselves. State enterprise and privatisation in zambia 19681998. U nited bus company of zambia before the company was disadvantage was that it cost the government significant sums. Advantages and disadvantages of bar chart a bar graph is a chart that uses either horizontal or vertical bars to show comparisons among categories.
Indeed, each element of privatizationfrom its apparent costsaving properties to its possible negative impact on minority workersprovokes strong. A private company in charge of one of these industries, interested only in profit, is likely to close down or. Basic advantage in privatization is accurateness and commitment towards the service as they private organizations are very much concerned about the profits they make ultimately. Uk coals assets were merged with rjb mining to form uk coal plc british gas. Introduction privatization is thought to improve overall economic efficiency, hence improving general welfare. Mar 25, 2020 advantages and disadvantages of privatization. In line with other newly independent african countries, the goz transferred ownership to. It may happen that the government manages privatisation in close relation to restructuring other public sector enterprises through a public holding corporation or any other kind of public agency or special purpose entity acting as a restructuring agency. Zambia postprivatization study independent evaluation group.
Disadvantages of privatization private companies do not care about the society and their main motive is to earn profits, which is with contrast to government companies which keeps doing social work and therefore if privatization happens it will result in fewer funds for society because private companies have no obligation to do social work. Free essays on disadvantages of nationalisation in zambia through. Pdf silent privatisation of customary land in zambia. University, zccm holding and zambia privatisation agency for the information and data obtained from. The state, privatisation and the public sector in zambia. Following the economic reforms announced at mulungushi 1968 and matero hall. The impacts of privatisation on copperbelt communities.
For example, tap water has very significant fixed costs. The following topic is highly debated nowadays in most countries, and each one of them has its own pattern of health care and health insurance. One axis of the chart shows the specific categories being compared, and the other axis represents a discrete value. Zncci zambia national council of commerce and industry znfu zambia national farmers union znut zambia national union of teachers zpa zambia privatisation agency zra zambia revenue authority zrp zambia republican party zufiaw zambia union of financial and allied workers rakner i page 7 wednesday, october 1, 2003 2. The impacts of privatisation on copperbelt communities social impacts of privatisation 15% of zambia s 10. However, it is now one of the worlds poorest nations. Nov 19, 2019 privatisation is often achieved through listing the new private company on the stock market.
Therefore there is no scope for having competition amongst several firms. Selling a countrys natural resources is not a gain. Privatization is most of the time associated with improved efficiency due to the. Government privatization illinois general assembly. Privatization issues this section addresses the issues, and the decisions which governments themselves must make prior to embarking upon a privatization process. Zambia was originally colonised by the british, and enjoyed prosperity and stability for many years. Privatization is advantageous because it improves efficiency and profitability, prevents political interference and increases competition. Economy and globalization in zambia mit opencourseware. For example, a government can sell the controlling interest to a private sector company, but still keep a significant shareholding itself. Jan 15, 2010 in the 1980s and 1990s, privatisation has been widely adopted across the developing world and has reversed the previous trend towards the expansion of state enterprise. The effects of privatization in zambia janny chang, phd. Indeed, each element of privatization from its apparent costsaving properties to its possible negative impact on minority workersprovokes strong.
Privatization was wrong, zambia could have learnt how to build the economy from emerging economies such as china, japan etc. Zambia was one of the earlier countries to embark on a major privatization exercise as part of its economic reform program started in 1992. The fourth section will introduce and discuss the results of my own empirical study. To accomplish this objective, case studies of zambia were undertaken within the concept of. The history of the zambian privatisation programme. This thesis examines the establishment, operation and privatisation of the state enterprise sector in zambia between 1968 and 1998. In the final section of the paper i will attempt to draw useful conclusions regarding privatization as an economic growth policy. The impact of privatisation on the zambian economy 54 sarpn.
Much of the impetus is the desire to inject competition into the delivery of state services in order to provide services to citizens in a moreefficient. The utilities are products and services that are essential to all members of the general public. Between 1992 and 1996 it examined a number of different methods through which the privatisation of the company could be implemented. Private companies do not care about the society and their main motive is to earn profits, which is with contrast to government companies which keeps doing social work and therefore if privatization happens it will result in fewer funds for society because private companies have no obligation to do social work. The impact of privatisation on the zambian economy from 1975 zambia s economy underwent a world record breaking decline. The study also provides an overview of the impact of privatisation on human rights. Political and economic liberalisation in zambia 19912001. Besides deconcentration, devolution and delegation, there is another form called privatisation. Fact sheet 3a will privatisation help make zambia wealthy. The disadvantages of privatisation scool, the revision. The effect of structural adjustment programmes on the delivery of veterinary services in africa 3 officially recognized as part of the animal health delivery system.
A private company in charge of one of these industries, interested only in profit, is likely to close down or marginalize unprofitable. That privatisation has led to increased supply of quality goods and services on the market especially essential commodities sugar, salt, soap, e. The world bank seeks to assess the effectiveness of the privatization program which was initiated in zambia in 1992 with significant assistance from the world bank and other donor agencies. The region is the most urban and the most industrial in the country, with the highest share of its population in formal employment. Natural monopoly a natural monopoly occurs when the most efficient number of firms in an industry is one. At independence in 1964, zambia inherited a private sector driven economy dominated by the foreignowned mining sector contributing almost 50% of gdp and even more of government revenues.
Privatization of public enterprises in zambia african development. Ferguson and chandrasekharan include privatisation as a particular form of devolution to private ownership that has become prominent in recent times ferguson and chandrasekharan. Fact sheet 3b will privatisation make zambians wealthy. Editorial although there are claims of success from the sponsors of zambias privatisation programme, these successes have proved impossible to see with our naked eyes.